Ann: Appendix 4C - quarterly, page-23

Obviously a few people are questioning the reduced revenue stream & worried about future revenues.

A quick summary on Alexiums future growth.

Moving Forward

Sales Revenue was down $1.6M from the prior quarter. Several factors contributed to this trend, A seasonal slowdown in bedding sales in some end bedding brands resulted in fewer raw material needs in August and September. We have seen these customers return to normal shipment volumes and order frequency

Expanding customer base

During the period, Alexium continued to expand its customer base by bringing on board several new accounts. Key efforts of expansion this quarter in the sales pipeline are largely in the flame retardant space whilst Alexicool orders continued on a growth trend as our brand and capability is more widely known in the market.

Expansion of sales

Strong organic growth continues with Alexium’s Phase Change Material products with current customers in the Home Textile market. In addition to this organic growth, we have also secured business with four new customers in various mattress component applications.

Alexium is now scaling up shipments of chemistry into South East Asia for pillow and other home textile applications.

Over the next six months, Alexium expects key projects in two new sectors, Protective Coatings and Resins and Disposable Healthcare Nonwovens to convert into active sales. Nonwovens are the predominant textiles used in markets that consume high volumes of low-cost, disposable fabrics and is an exciting space for Alexium. The Company is in late stages of product validation and scale-up with customers in both resins and nonwovens and would represent a significant expansion outside of bedding and the first significant revenue Alexium would realize outside of textiles